To all, earnings from BW!:
BW0048 JUL 25,1997 7:59 PACIFIC 10:59 EASTERN
( BW)(SYNCOR)(SCOR) Syncor Reports Double-Digit Growth in Net Income
for Second Consecutive Quarter; Second-Quarter EPS of 44 Cents Vs.
22 Cents
Business Editors, Health/Medical Writers
WOODLAND HILLS, Calif.--(BW HealthWire)--July 25, 1997--Syncor
International Corp. (NASDAQ:SCOR) Friday announced it achieved
double-digit growth in net income for the second quarter ended June
30, 1997.
Net income for the second quarter ended June 30, 1997, increased
by 87 percent to $4.3 million or 44 cents per share (includes
non-recurring of 2 cents and net gain of 11 cents from a
discontinued operation), compared with $2.3 million or 22 cents per
share for the corresponding period of the prior year (includes net
loss of 3 cents from a discontinued operation).
Net sales for the second quarter of 1997 increased by 5.2 percent
to $98.2 million, up from $93.3 million for the corresponding
period of the prior year.
A net gain of $1.1 million or earnings per share of 11 cents is
included in the current quarter's results in discontinued
operations. This net gain is the result of the final accounting
involving a decision made by Syncor in March 1997 to sell its
interest in Positron Emission Tomography (PET).
Net income for the six months ended June 30, 1997, increased
91 percent to $7.6 million or 76 cents per share (includes 16 cents
non-recurring and net gain of 11 cents from a discontinued
operation), compared with $4.0 million or 38 cents per share
(includes 3 cents non-recurring and net loss of 4 cents from
discontinued operations) for the same period in 1996.
Net sales for the six months ended June 30, 1997, increased
$191.3 million, as compared with $185.3 million for the corresponding
period of the prior year.
"Syncor's financial performance for 1997 continues to reflect
the ongoing efforts of our company to increase stockholder value by
sustaining increased sales and earnings," said Robert Funari,
Syncor's president and chief executive officer. "Syncor will
continue to leverage its core competencies in radiopharmacy in order
to optimize financial opportunities which position the company as
the clear and undisputed market leader."
Earnings from continuing operations for the second quarter of
1997 increased by 22 percent to $3.2 million or 33 cents per share,
compared with $2.6 million or 25 cents per share for the
corresponding period of the prior year.
For the six months ended June 30, 1997, earnings from continuing
operations increased by 47 percent to $6.6 million or 65 cents
earnings per share, compared with $4.5 million or 42 cents per share
for the corresponding period of the prior year.
During the second quarter of 1997, Syncor continued to focus on
core growth strategies that reposition the company for future
opportunities. Syncor has recently concluded the acquisition of a
manufacturer, signed other new product distribution agreements and
launched a global expansion plan to add domestic and international
radiopharmacies.
Syncor also finalized the renegotiation of a key distribution
agreement, which includes access to additional new products. The
effect of this expanded new agreement is estimated to increase
pretax earnings for calendar year 1997 by $5 million. Additionally,
the company's board of directors recently approved an increase in
the stock repurchase program and a senior management stock purchase
plan.
Syncor International compounds and dispenses radiopharmaceutical
products -- in patient-specific unit doses and multidose form -- for
use in diagnostic imaging and therapy. Syncor distributes these
time-critical products through an expanding network of nuclear
pharmacy service centers -- 118 domestic and 11 international.
This network services 7,000 customers and is the premier provider
of both diagnostic and information services to hospitals and alternate
site nuclear medicine facilities nationwide.
Additionally, Syncor is broadening its business base beyond its
core commercial radiopharmacy operations. Through a joint venture
announced in February 1997, Syncor plans on expanding its presence
in the medical imaging field. Syncor anticipates operating 10
"open" MRI (magnetic resonance imaging) centers across the United
States during the first year of operations. In addition, Syncor has
entered the radiopharmaceutical manufacturing field with the
purchase of an Iodine-123 business.
A conference call will be held at 11:15 a.m. EDT on July 25.
News on Demand, 800/546-8172
Web site: stockprofiles.com
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SYNCOR INTERNATIONAL CORP. AND SUBSIDIARIES
Consolidated Statements of Income
(In thousands, except per-share data)
Three Months Ended June 30,
1997 1996
Net sales $ 98,187 $ 93,296
Cost of sales 74,333 71,547
Gross profit 23,854 21,749
Operating, selling and
administrative expenses 18,869 17,654
Operating income 4,985 4,095
Other income, net 409(a) 317
Income before income taxes 5,394 4,412
Provision for income taxes 2,157 1,765
Net income from continuing operations $ 3,237 $ 2,647
Discontinued operations, net of tax 1,063 (343)
Net income $ 4,300 $ 2,304
Net income per share -- primary
Continuing operations $ 0.33 $ 0.25
Discontinued operations $ 0.11 $ (0.03)
Net income per share $ 0.44 $ 0.22
Weighted average shares
outstanding -- primary 9,870 10,637
Net income per share -- fully diluted
Continuing operations $ 0.32 $ 0.25
Discontinued operations $ 0.11 $ (0.03)
Net income per share $ 0.43 $ 0.22
Weighted average shares outstanding
-- fully diluted 9,964 10,796
(a) Includes $283 non-recurring item in 1997.
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SYNCOR INTERNATIONAL CORP. AND SUBSIDIARIES
Consolidated Statements of Income
(In thousands, except per-share data)
Six Months Ended June 30,
1997 1996
Net sales $191,271 $185,317
Cost of sales 147,301 143,348
Gross profit 43,970 41,969
Operating, selling and
administrative expenses 36,139 35,562
Operating income 7,831 6,407
Other income, net 3,140(a) 1,048(a)
Income before income taxes 10,971 7,455
Provision for income taxes 4,388 2,982
Net income from continuing operations $ 6,583 $ 4,473
Discontinued operations, net of tax 1,063 (463)
Net income $ 7,646 $ 4,010
Net income per share -- primary
Continuing operations $ 0.65 $ 0.42
Discontinued operations $ 0.11 $ (0.04)
Net income per share $ 0.76 $ 0.38
Weighted average shares
outstanding -- primary 10,107 10,495
Net income per share -- fully diluted
Continuing operations $ 0.65 $ 0.41
Discontinued operations $ 0.10 $ (0.04)
Net income per share $ 0.75 $ 0.37
Weighted average shares outstanding
-- fully diluted 10,135 10,849
(a) Includes $2,825 non-recurring item in 1997 and $543 in 1996.
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CONTACT: Syncor International Corp., Woodland Hills
Mike Mikity, 818/737-4610
Mary L. Meusborn, 818/737-4643 |
